Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on april 30, 2020, abc acquired an investment in b

On April 30, 2020, ABC acquired an investment in bonds which has a face value...

80.2K

Verified Solution

Question

Accounting

On April 30, 2020, ABC acquired an investment in bonds which has a face value of P5,000,000 and pays 9% interest due every April 30 and Oct. 30 until Oct. 30, 2024. It paid P4,822,305 inclusive of transaction fees of P11,804. The resulting effective interest rate on this transaction is 10%. It accounted the investment as a financial asset at amortized cost.

If on Nov. 30, 2021, ABC sold the investment, what is the interest income for that year?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Let f(x,y) = 3x3 + 3x2 y − y3 − 15x. a) Find and classify the critical...

Basic Math
Q

Which of the following is a key control enzyme in the regulation of respiration? a. Phosphofructokinase b. Pyruvate...

Biology
Q

OA Small islands have fewer species than a similar sized block of continent B As...

Biology
Q

A E B F Match the directions w their names G H

Biology
Q

In serine protease catalytic triad mechanism the first and second products that leaves the active...

Biology
Q

10 18 10 2x What is the value of x O 4 8 3 6...

Geometry
Q

Find the dimensions of the rectangular field of maximum area that can be made from...

Calculus
Q

3 Consider the IVP y t 1 y t 3 1 1 1 t 6...

Algebra
Q

The STUV Partnership owns the following assets on December 30 of the current? year: ...

Accounting
Q

A continuacin se presenta informacin relacionada con Whispering Company. Fecha Inventario final (Precios de fin...

Accounting
Q

Rogers Racers fabrica autos de carrera de juguete que se venden a $12 cada uno...

Accounting
Q

If the budget direct labour hours is 34 hours and direct labour rate is RM5.00,...

Accounting